Gross revenue is the top of the income statement — the total dollars that flowed in before anything was taken out. For subscription merchants on Shopify, that means every subscription charge, one-time order, and add-on captured during the period, regardless of whether some of those orders later got refunded or discounted.
What's included in gross revenue
- All subscription billing — both recurring and one-time within the period.
- One-time portal add-ons — anything subscribers added to their orders.
- Standard ecommerce orders from non-subscription customers.
- Shipping revenue if charged separately.
Gross revenue does not deduct:
- Refunds and returns issued in the period.
- Discounts and promotional codes applied at checkout (these reduce gross revenue at the line-item level, depending on accounting policy).
- Cost of goods sold, shipping costs, or operating expenses.
- Sales tax collected on behalf of tax authorities.
Gross revenue vs. net revenue
The relationship is simple: gross revenue minus refunds, returns, and (depending on policy) discounts equals net revenue. The gap between the two tells you something useful — a wide gap signals returns or refund problems; a narrow gap signals clean order flow.
How to track gross revenue in Shopify subscriptions
Shopify Analytics reports gross sales by default. For subscription businesses, the more useful breakdown is gross subscription revenue (recurring) vs. gross one-time revenue. This split tells you how much of your top-line is contractually recurring versus opportunistic — the foundation for thinking about predictable revenue and annual recurring revenue.
Why gross revenue alone is misleading
A high gross revenue number that includes $X in refunds, $Y in customer-acquisition discounts, and $Z in failed-payment dollars that never landed is not the business you think you have. Gross is the starting point. Net revenue, contribution margin, and ultimately net profit are where you find out whether the business is actually working.